Weekly Market Recap August 31, 2018
Friday, August 31, 2018, 4:08 PM
Submitted by: Landus Cooperative
A strong end to a mediocre week. December corn closed up 9 ½ cents today at $3.66. While fairly impressive movement for corn in a trade session, this was only up 3 ¼ cents from where markets left off last Friday. Soybeans also found some strength today, closing 14 cents in the green. However, at $8.45 ½ for November futures, this was actually 9 ¾ cents down from last week’s close. We are most likely seeing support ahead of the 3 day weekend combined with FND for September contracts.
Last Friday’s CFTC report put funds net short at -14,824 for corn, their least bearish position in 2 months. They also took 18,. 875 contracts off their net short position for beans, going to – 40,049 contracts. The biggest story this week is USDA announced its payment plan for producers affected by low markets, 1 cent/bu for corn and $1.65/bu for beans to be paid out on 50% of 2018 proven production. We didn’t see any major changes in this week’s Crop Progress report, with corn rating good/excellent staying unchanged at 68% and soybeans rating good/excellent being bumped up 1% to 66%. Overall, the crop is still maturing ahead of the average pace.
Rain continues to be in the forecast for most of the Corn Belt. The U.S.-Mexico Trade Agreement appears to be commencing, and talks with Canada seem to be in the works again. We did not hear much news regarding China this week and continue to see basis values for soybeans weaken. On Wednesday, DTN reported the average corn price as of Tuesday night to be $3.09, 11 ¼ cents higher than last year. On the other side, the average cash price for soybeans was $1.36 ¾ lower at $7.40 ¼.
Yesterday, Governor Reynolds and Secretary Perdue hosted a farmer roundtable at Landus Cooperative, read more here:
Continue talking with your GMA as we get closer to harvest, and look for your 2018 Harvest Policy in the coming week.
Have a happy and safe Labor Day weekend!